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Sections 38-39 of the Mediation Act, 2023: duties and functions of the Council and reporting

The Council shall carry out the fifteen items in section 38: promotion of mediation, guidelines for education and certification, the manner of conduct of mediation, registration...

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Arbitration
Published
October 2, 2026
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Oct 4, 2026
Reading time
8 min
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Last updated: October 2026Verified against: Government sources

Section 38 lists fifteen duties and functions of the Mediation Council of India, from promoting mediation and certifying mediators to recognising service providers and keeping an electronic depository of mediated settlement agreements. Section 39 requires an annual or periodic report to the Central Government and allows the Government to take supplementary measures.

Section 38: the fifteen duties and functions

Section 38 begins "The Council shall—", so the items are duties. The table groups the clauses by theme.

ThemeClauseWhat the Council does
Promotion(a)Endeavours to promote domestic and international mediation in India through appropriate guidelines
Promotion(b)Endeavours to develop India to be a robust centre for domestic and international mediation
Mediators(c)Lays down guidelines for the continuous education, certification and assessment of mediators by recognised mediation institutes
Process(d)Provides for the manner of conduct of mediation proceedings, under section 15(1)
Mediators(e)Provides for the manner of registration of mediators and renews, withdraws, suspends or cancels registration on conditions as may be specified
Mediators(f)Lays down standards for professional and ethical conduct of mediators under section 15(3)
Capacity(g)Holds trainings, workshops and courses in collaboration with mediation service providers, law firms, universities and other stakeholders, Indian and international, and any other mediation institutes
Capacity(h)Enters into memoranda of understanding or agreements with domestic and international bodies, organisations or institutions
Providers and institutes(i)Recognises mediation institutes and mediation service providers and renews, withdraws, suspends or cancels such recognition
Providers and institutes(j)Specifies the criteria for recognition of mediation institutes and mediation service providers
Providers and institutes(k)Calls for any information or record of mediation institutes and mediation service providers
Providers and institutes(l)Lays down standards for professional and ethical conduct of the mediation institutes and mediation service providers
Information(m)Publishes such information, data, research studies and other information as may be required
Records(n)Maintains an electronic depository of the mediated settlement agreements made in India and other related records, in such manner as may be specified
Residual(o)Performs any other function assigned by the Central Government

Note the wording of clauses (a) and (b): the Council "shall endeavour", which is a duty of effort and not a promise of result. The words "robust centre" in clause (b) are the Act's own. If you want to apply for registration or recognition, or advise someone who does, our legal consultation team can help you check the conditions once the regulations are in front of you.

Mediators: certification, registration and ethics

Three clauses concern mediators. Clause (c) deals with guidelines for continuous education, certification and assessment by "recognised mediation institutes" (see section 42). Clause (e) covers registration of mediators and the renewal, withdrawal, suspension or cancellation of registration "on the basis of conditions as may be specified". Clause (f) concerns standards of professional and ethical conduct of mediators under section 15(3). The conditions, qualifications and standards are left to regulations, and none are in the text consulted. This article gives none.

Registration with the Council matters in practice: section 3(i) says "mediator" includes a person registered as mediator with the Council, and section 5(3)(i) lists a mediator registered with the Council as one who may conduct pre-litigation mediation. See our article on section 5. The text does not say that only registered persons can act as mediators; section 3(i) also covers a person appointed by the parties or a provider.

Process: conduct of mediation

Clause (d) ties the Council to section 15(1): the mediation process is conducted "in the manner as may be specified", and the Council provides for it. Until regulations are made, section 57 keeps court-annexed mediation rules in force. Clause (d) also underlies online mediation, where section 30(2) says the process shall be in such manner as may be specified. See our article on sections 15 to 17 and our article on section 30.

Providers and institutes

Clauses (i) to (l) give the Council four powers over mediation institutes and service providers: recognition (with renewal, withdrawal, suspension and cancellation), criteria, calling for information or records, and standards of professional and ethical conduct. These link to sections 40 to 42; see our article on mediation service providers and institutes. Clause (j) uses the word "specify" for criteria, while clause (i) is the power to recognise; the text of section 38 does not itself state the criteria.

The depository of settlement agreements

Clause (n) requires the Council to maintain "an electronic depository of the mediated settlement agreements made in India and for such other records related thereto in such manner as may be specified". The text does not say that a party must lodge its agreement in the depository, and it does not say how agreements enter it. Section 20 deals with registration of settlement agreements with an Authority under the Legal Services Authorities Act, 1987 or a notified body, and section 41(e) lists facilitation of registration among a provider's functions; see our article on section 20. The relationship between the depository and registration is not explained in the text consulted, and this article does not infer one.

Section 39: monitoring and reporting

Section 39(1). The Council "shall, as soon as practicable after the end of each year or at such other intervals as directed by the Central Government, prepare a report on the implementation of the provisions of this Act during the year or such interval and forward a copy thereof to the Central Government."

Section 39(2). "The Central Government may take such additional measures as it deems necessary to supplement the functioning of the Council and for the effective implementation of the provisions of the Act."

So there is a yearly report (or one at intervals the Government directs) and a Government power to supplement the Council's work. The text of section 39 does not say that the report is placed before Parliament or published. For the rule-making and regulation-making sections, see our article on sections 51 to 54.

Reading the Council's role in context

The Council's powers matter for the whole Act because so many provisions say "as may be specified". Examples of where regulations are expected include the manner of conduct (section 15(1)), qualification for a foreign mediator (section 8(1) proviso), the cost of mediation (section 25(1)) and the manner of registration of settlement agreements (section 20(1)). Where a regulation is needed for a step in your dispute, check the Gazette. For the composition and administration of the Council, see our article on sections 31 and 32.

Need help with Council-related compliance?

Registration, recognition and the conditions behind them are set by the Council's regulations, which you will need to read once available. We can help you plan and apply through our legal consultation service.

Key takeaways

  • Section 38 lists fifteen duties and functions, clauses (a) to (o).
  • The Council provides for the manner of conduct of mediation and the registration of mediators, subject to conditions as may be specified.
  • It recognises mediation institutes and service providers and may renew, withdraw, suspend or cancel recognition.
  • It maintains an electronic depository of mediated settlement agreements made in India, in the manner as may be specified.
  • It reports to the Central Government after each year or at directed intervals (section 39).

Read next

Disclaimer: Based on the Mediation Act, 2023 as enacted and published in the Gazette of India on 15 September 2023, as consulted on 2 October 2026. The Act comes into force by notification; the commencement of each provision, the rules and the regulations should be checked. This article is general information, not legal advice; check the official text before acting.

Quick recapKey facts & short answers

Key Facts About Sections 38-39

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Who registers mediators?

Under section 38(e), the Council provides for the manner of registration and may renew, withdraw, suspend or cancel it on conditions as may be specified.

Who recognises mediation service providers?

The Council, under section 38(i), with criteria specified under clause (j).

A well-drafted notice often ends the dispute that a poor one would begin.

— TaxClue Legal Desk

Sections 38-39: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

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Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

Under section 38(e), the Council provides for the manner of registration and may renew, withdraw, suspend or cancel it on conditions as may be specified.

The Council, under section 38(i), with criteria specified under clause (j).

Section 38(n) requires an electronic depository of mediated settlement agreements made in India, in such manner as may be specified.

As soon as practicable after the end of each year, or at other intervals directed by the Central Government (section 39(1)).

Yes. Section 38(o) covers any other function assigned by the Central Government, and section 39(2) lets it take additional measures.

They are "as may be specified" in regulations. None are in the text consulted.